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WEINSTEIN: DISNEY/NETFLIX DEAL BIGGEST IN SHOWBIZ HISTORY

December 6, 2012 by · Leave a Comment 

Disney CFO Jay Rasulo told an investors conference in New York Wednesday that Disney was “thrilled” with the exclusive deal it concluded with Netflix, which will reportedly net the studio $350 million per year. “We feel pretty confident that this was the highest value deal that we could do,” Rasulo said, indicating that Disney had talked to other possible buyers. Meanwhile, Ted Sarandos, Netflix’s chief content officer, told the same conference that he expects to close exclusive content deals with other producers. Sarandos was interviewed at the conference by Harvey Weinstein who called the Disney deal “probably the biggest content deal in the history of our business.” Nevertheless some analysts have wondered aloud where the money is going to come from to pay for Netflix’s increasing content costs. Not from higher subscription rates, Sarandos said. “We are not contemplating raising the $8-a-month subscription fee for unlimited online viewing,” he insisted. But Wedbush Securities analyst Michael Pachter has predicted that the Disney deal will likely prove to be Netflix’s undoing.